PREFERRED STOCK AND DETACHABLE WARRANTS (Tables)

9 Months Ended

Sep. 30, 2016

Class of Stock [Line Items]

Schedule of Liabilities with Unobservable Inputs

The changes in liabilities measured using significant unobservable inputs for the nine months ended September 30, 2016 were as follows:

Level Three Roll-Forward
Item	Level 3
Balance at December 31, 2014	$	—
Warrants issued June 24, 2015	7,028,067
Change in valuation of warrants	(5,479,463		)
Balance at December 31, 2015	$	1,548,604
Change in valuation of warrants	1,986,320
Balance at March 31, 2016	3,534,924
May 2016 Series B1 Preferred Warrants (described below)	2,867,264
Change in valuation of warrants	(1,645,288		)
Balance at June 30, 2016	4,756,900
Change in valuation of warrants	(1,065,217		)
Balance at September 30, 2016	3,691,683

Series B Preferred Stock

Class of Stock [Line Items]

Summary of Temporary Equity

The initial BCF of the Series B Preferred was determined by calculating the intrinsic value of the conversion feature as follows:

Face amount of Series B Preferred Stock	$	25,000,000
Less: allocated value of Warrants	7,028,067
Allocated value of Series B Preferred Stock	$	17,971,933
Shares of Common stock to be converted	8,064,534
Effective conversion price	$	2.23
Market price	$	2.94
Intrinsic value per share	$	0.7115
Intrinsic value of beneficial conversion feature	$	5,682,741

The following table represents the carrying amount of the Series B Preferred Stock, classified as Temporary Equity on the Balance Sheet, at inception and as of September 30, 2016 and December 31, 2015:

Temporary Equity:
At Inception	June 24, 2015
Face amount of Series B Preferred	$	25,000,000
Less: warrant value	7,028,067
Less: beneficial conversion feature	5,737,796
Less: issuance costs and fees	1,442,462
Carrying amount at inception	$	10,791,675
	September 30, 2016		December 31, 2015
Face amount of Series B Preferred	$	25,000,000	$	25,000,000
Less: repurchase of 3,575,070 shares	11,189,838		—
Plus: dividends in kind	950,474		—
Less: unaccreted discount	6,542,037		13,044,793
Carrying amount	$	8,218,599	$	11,955,207

Series B1 Preferred Stock

Class of Stock [Line Items]

Summary of Temporary Equity

The May 2016 BCF was determined by calculating the intrinsic value of the conversion feature as follows:

	May 13, 2016
Face amount of Series B1 Preferred Stock	$	19,349,756
Less: allocated value of May 2016 Warrants	2,867,264
Allocated value of Series B1 Preferred Stock	$	16,482,492
Shares of Common stock to be converted	12,403,683
Effective conversion price	$	1.33
Market price	$	1.52
Intrinsic value per share	$	0.19
Intrinsic value of May 2016 beneficial conversion feature	$	2,371,106

The following table represents the carrying amount of the Series B1 Preferred Stock, classified as Temporary Equity on the Balance Sheet, at inception (May 13, 2016) and as of September 30, 2016:

Temporary Equity:
At Inception	May 13, 2016
Face amount of Series B1 Preferred	$	19,349,745
Less: May 2016 Warrant value	2,867,264
Less: May 2016 Beneficial Conversion Feature	2,371,106
Less: May 2016 issuance costs and fees	607,880
Carrying amount at inception	$	13,503,495
	September 30, 2016
Face amount of Series B1 Preferred	$	19,349,745
Plus: dividends-in-kind	145,123
Less: unaccreted discount	5,583,341
Carrying amount	$	13,911,527